Monthly grocery budge for daycare only

[playfelt]

Groceries is a specific item that is included in the supplies section on the first page of the T2125. It does not go into the business use of home percentages at all. Supplies are everything from pens and paper, toilet paper, wipes, soap, glue, batteries, food, party supplies, etc. Business use of home percentage is for household bills like utilities, mortgage interest, property tax, etc. Not understanding why people seem to be using the same percentage for food as they are for heat and water. That makes no sense at all.

[Lee-Bee]

Groceries is a specific item that is included in the supplies section on the first page of the T2125. It does not go into the business use of home percentages at all. Supplies are everything from pens and paper, toilet paper, wipes, soap, glue, batteries, food, party supplies, etc. Business use of home percentage is for household bills like utilities, mortgage interest, property tax, etc. Not understanding why people seem to be using the same percentage for food as they are for heat and water. That makes no sense at all.

I have it right here in writing as a 3rd option for calculating daycare food expenses as provided by the daycare accountant the Tax workshop offered at the CCPRN last year. Not saying it is officially legit but it was offered by an accountant in the CCPRN office as the way to do it.

[Artsand crafts]

Groceries is a specific item that is included in the supplies section on the first page of the T2125. It does not go into the business use of home percentages at all. Supplies are everything from pens and paper, toilet paper, wipes, soap, glue, batteries, food, party supplies, etc. Business use of home percentage is for household bills like utilities, mortgage interest, property tax, etc. Not understanding why people seem to be using the same percentage for food as they are for heat and water. That makes no sense at all.

I can understand why accountants are using house usage % for grocery cost. When I started doing my dc taxes with turbo tax they were offering accountants services for a fee which I hired. They were telling me to do this (to use a % of house usage for grocery expenses), but that did not seem accurate to me at all and at the end I used the formula of % of food consumed by dck instead. I believe that advisers/accountants that aren't knowledgeable of this industry don't know how to create a formula (or were to get one since it is only specific for this kind of business) to calculate it, so they go the easy way. I don't know how they can explain that during an audit. Maybe if the auditor does not know too much about this industry they would not even notice the mistake and at the end it would not matter. Maybe a very detailed and smart auditor could notice it, even if they do not have the experience in hdc.

[Artsand crafts]

or maybe the difference in dollar amount between using 50% or using the 36 to 45% based on the formula that I am using is not significant. Using 50% of grocery bill for me in 2015 would be about $7,700 and using the food consumed by dck formula is about $6,400. Maybe that does not make a big difference compared to what they collect everywhere else and the auditor can just give it a pass or just make a recommendation to improve the calculation in the best case scenario.